News

Heathrow slots fetch £20m

Analysts say American Airlines has paid a high price to Cyprus Airlines for the daily pair of slots

AMERICAN AIRLINES has paid nearly £20m for a pair of take-off and landing slots at Heathrow airport, underlining the desirability of the London hub to international airlines.

The giant US airline, which has a deep commercial parternship with British Airways, bought the midday slots from Cyprus Airways, which will cease services to Heathrow. Cyprus Airways said American paid $31m (£18.2m) and would take over the slots from September.

Airline analysts said the price was high for a single daily pair. While there is no official benchmark price for slots — the rights to take off and land at certain times, which officially cannot be bought and sold — recent deals provide a guideline. Last year Delta, one of American’s big US rivals, paid £28m for two pairs. Prices depend on timings — afternoon and early morning slots are valuable to US airlines, for example — and what other flights the airline has from Heathrow